THE INFLUENCE OF THE SIZE OF THE ECONOMY AND EUROPEAN INTEGRATION ON FOREIGN DIRECT INVESTMENTS IN THE CENTRAL, SOUTHEASTERN AND EASTERN EUROPEAN STATES 1994-2013

The paper studies the interdependence of the economy size and foreign direct investments (FDI) in the transitional economies of Central, Southeastern and Eastern Europe. In the global capitalist economy, foreign direct investments (FDI) represent one of the key determinants of economic growth. Among some transitional economies, in the last 20 years, FDI represented one of factors that increased the economic growth, and in other transitional economies, the influence of FDI was minor or even negligible. In the literature devoted to the influence of FDI on economies, the research about the determinants of geographical pattern of FDI distribution usually focuses on the factors that determine why some states manage to draw FDI in higher levels than some other states. Our research focused on the transitional economies of Central, Southeastern and Eastern Europe, which were for the most part of the last 20 years net receivers of the FDI. Only a couple of these countries in the years of the current economic crisis have experienced FDI net outflow. Among the states studied, we have equally studied the EU members, as well as the non-EU members. We have tried to find similarities and differences between these two groups of states in order to determine the influence of EU membership on FDI per capita and how it correlates with the size of the state’s economy. We have also tried to answer the question of how much the GDP growth rate correlates to the FDI net inflow share in GDP for EU and non-EU members. The methodology is based on the statistical correlation between FDI in current US dollars and GDP per capita in current US dollars (World Bank data) for each represented state, through the surveyed period from 1994 until 2013. The statistical correlation matrix (Pearson method) determined whether any correlation between the average GDP growth rate (chain index) and the average share of FDI in GDP per each state exists for each state surveyed

Smallness of the Economy as a (Dis)advantage: The Evidence from Selected Interdependent Macroeconomic Data

Small economies are usually classified by the size of their GDP. Among the small states, which can be determined by various criteria, there are many small economies. Smallness of the economy influences the vulnerability of the state, and if it is connected with the other potentially negative factors (land-locked or island position) or reliance on a few export products, it can create vulnerable economies. Concurrently, smallness of the economy can be an advantage, since it provides better conditions for faster economic growth and makes transformations of the economy easier. This article brings a quantitative comparative study of the small economies, classified by the size of their total GDP. Sets of macroeconomic data (foreign direct investment [FDI] net inflows in current US$and GDP in current US$; external debt and GDP) were studied, for which the correlation between the FDI and GDP was calculated (for 40 smallest economies), as was the regression analysis between the FDI net inflows (independent variable) and the gross fixed capital formation (GFCF), as well as between the FDI net inflows and the growth of external debt for the 10 smallest economies between 1981 and 2014. The results were used to describe if there is a significant connection between FDI and external debt and if it can be mathematically modeled. All the data were taken from the web pages of the World Bank. The correlation analysis for FDI and GDP for the same years was also done. The countries that were studied had the smallest 40 economies in the world in 1981 (starting year) and in 2014 (final year), regardless of their land area, population, and geographical position. To examine the influence of the smallness of economy, the 15 largest world economies were studied as control group

The impact of consumer xenocentrism and ethnocentrism on purchase intention

Diese Arbeit befasst sich mit dem lebhaften Interesse an der positiven Einstellung des Konsumenten gegenüber ausländischen oder inländischen Marken und deren Auswirkungen auf das Konsumentenverhalten. Daher wurde der Einfluss von Konsumenten-Xenozentrismus und -Ethnozentrismus auf den Prozess der Markenstereotypisierung und folglich auf Kaufintention untersucht. Unter Konsumenten in Bosnien und Herzegowina wurde eine empirische Studie durchgeführt, in der Marken aus drei verschiedenen Produktkategorien verwendet wurden, bei denen alle Marken Convenience-Produkte waren. In Übereinstimmung mit der bisherigen Literatur bestätigen die Ergebnisse, dass sich der Konsumenten-Xenozentrismus positiv auf die Kaufintention ausländischer Marken auswirkt. Darüber hinaus wirkt sich der Konsumenten-Ethnozentrismus positiv auf die Kaufintention für inländische und negativ auf ausländische Marken aus. Darüber hinaus ist der Einfluss von Markenstereotypen auf Kaufintention unabhängig von der Herkunft der Marke immer positiv. Die Neuheiten, die diese Studie mit sich bringt, sind Erkenntnisse, dass Wärme und Kompetenz als Dimensionen von Markenstereotypen eine wichtige Vermittlerrolle zwischen dem Konsumente-Xenozentrismus und den Kaufintention für ausländische Marken sowie zwischen dem Konsumenten-Ethnozentrismus und den Kaufintention für inländische Marken spielen. Neben dem theoretischen Beitrag werden in dieser Masterarbeit mögliche Auswirkungen der Ergebnisse auf das Management erörtert.This work addresses the vivid interest in consumer’s positive dispositions towards foreign or domestic brands and their impacts on consumer behaviour. Hence, it was investigated on influences of consumer xenocentrism and ethnocentrism on the process of brand stereotyping, and consequently purchase intentions. An empirical study was conducted among consumers in Bosnia and Herzegovina using brands from three different product categories, where all brands were convenience goods. In line with previous literature, the results confirm that consumer xenocentrism has a positive effect on the purchase intentions for foreign brands. Further, consumer ethnocentrism has the positive effect on purchase intentions for domestic, and negative for foreign brands. Moreover, the impact of brand stereotypes on purchase intentions is always positive, regardless to the brand origin. The novelties that this study brings, are findings that warmth and competence, as brand stereotypes dimensions, play a significant mediating role between consumer xenocentrism and purchase intentions for foreign brands, as well as between consumer ethnocentrism and purchase intentions for domestic brands. Besides the theoretical contribution, this master thesis discusses possible managerial implications of the results